High yields, short duration, and low volatility have pushed P2P lending into the spotlight of large institutional fund managers. Since the first P2P securitization in 2013, over 40 securitizations totaling roughly $8.5 billion have occurred. The loan originators have been a mix of fintech companies like Lending Club, Prosper, SoFi, OnDeck, and Kabbage. The issuers have been institutional fund managers, who have purchased loans off these origination platforms, converted them into securities, and subsequently sold the securities to insurance companies and pension funds -- thereby providing institutional access to this new asset class.

How asset managers have constructed their P2P loan portfolios

Why institutional investors are increasingly evaluating P2P lending as a viable investment opportunity for their portfolios